In the short run, when the Fed increases the quantity of money, the
A) quantity demanded of money decreases.
B) demand for money increases.
C) nominal interest rate falls.
D) demand for money decreases.
E) price level decreases.
C
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The demand for a textbook written by Schwarz and Mobley is Q = 20,000?50P; supply is Q = 2,000 + 100P. Students complain about the high price of textbooks, so a price ceiling is imposed, which unfortunately leads to a shortage of texts. Below what price will shortages occur?
What will be an ideal response?
If a firm is willing to supply the 1,000th unit of a good at a price of $23 or more, we know that $23 is the
A) highest price the seller hopes to realize for this output. B) minimum price the seller must receive to produce this unit. C) average price of all the prices the seller could charge. D) price that sets the marginal benefit equal to the price. E) only price for which the seller is willing to sell this unit of the good.
In the short run, all costs are fixed
a. True b. False
Economic rent refers to profit derived from owning an apartment complex
a. True b. False Indicate whether the statement is true or false